ABC Industries

Comparative Balance Sheets

December 31, 2024 and 2023

2024 2023

Assets:

Cash $ 1,979,303 $ 1,310,000

Accounts receivable 1,775,000 1,350,000

Inventory 2,700,000 1,575,000

Land 1,675,000 1,800,000

Building 2,700,000 2,700,000

Less: Accumulated depreciation (900,000) (810,000)

Equipment 8,550,000 6,750,000

Less: Accumulated depreciation (1,575,000) (1,440,000)

Patent 3,600,000 4,500,000

$ 20,504,303 $ 17,735,000

Liabilities:

Accounts payable $ 1,900,000 $ 1,350,000

Accrued expenses payable 900,000 675,000

Interest Payable 4,000 -

Dividends Payable 25,000 35,000

Notes Payable 125,000 150,000

Bond Payable (net) 304,373 -

Shareholders' Equity:

Common stock 9,300,000 9,000,000

Paid-in capitalexcess of par 2,175,000 2,025,000

Retained earnings 5,770,930 4,500,000

$ 20,504,302 $ 17,735,000

Additional information from the accounting records:

a. During 2024, equipment with a cost of $700,000 (50% depreciated) was sold for $300,000.

b. The Statement of Shareholders Equity reveals reductions of $450,000 and $1,150,000 for stock dividends and cash dividends, respectively.

c. Net income for the year was $2,870,930.

d. Land was sold for $155,000.

e. On May 1, 2024, the company issued 10 year, $400,000.00, 6% bonds at a market rate of 10%. The issuing price of the bond was $300,302.32. Interest on the bonds is paid semi-annually on Oct 31 and April 30 of each year.

Using this financial statement data, prepare a complete statement of cash flows, using the indieect method